Every evening, as the blue of the night darkens, the Paseo Maritimo, which winds its way from Marbella to Puerto Banus along the Spanish coastline, is once again thronged with locals and tourists, Spanish and international, as they stroll before or after dinner, incessantly chatting, catching up on the news of the day. The ambience isContinue reading “Beyond the Beaches”
Author Archives: Eugene Kiernan
Fund Management: What’s working – what’s not
Markets have been unforgiving in 2022. Especially in the second quarter. A pincer movement between inflation and growth has compounded the concerns about the war in Ukraine to wreak havoc on many sectors in the world’s stock markets and in investor funds. Fund managers have had quite different experiences depending on how they have beenContinue reading “Fund Management: What’s working – what’s not”
A Confluence of Calamities
It sounds like some medieval curse that the Wizard Wobegone called down upon the elves of Myrtle, in response to their kidnapping of the Princess Petrushka, but this is in fact how the IMF described the current global economic and financial market situation. IMF Managing Director Kristalina Georgieva said the global economy faces its biggestContinue reading “A Confluence of Calamities”
Irish Pension Funds and the War in Ukraine
As a world event, the Ukraine War is seismic, and has edged out most topics from the financial news cycle since February. The human horror and loss is evident and growing daily. It is also having a wide impact on global politics and finance. Given its role in financial markets, it is worth seeing what hasContinue reading “Irish Pension Funds and the War in Ukraine”
Ukraine War hits all key issues for Markets
The war in Ukraine, while above all a deeply sad humanitarian crisis, may impact practically every aspect of our future lives. Following on the heels of a pandemic that continues to take its toll, the war will cast a long shadow. Financial markets are one barometer of the impact beyond Ukraine’s borders. But historically, marketsContinue reading “Ukraine War hits all key issues for Markets”
Currencies – the Next Stop for Volatility?
Volatility is on the up in asset classes like stocks and bonds, as governments and central banks around the globe look for an exit strategy from highly supportive pandemic policies. US bond volatility (as measured by the options market index) has practically doubled in the past 4 months and stock markets have been displaying heightened volatilityContinue reading “Currencies – the Next Stop for Volatility?”
Investment Funds: What’s Selling and What’s Not
It’s been another fantastic year for asset management. Sales of investment products pushed through new record levels in 2021. But what is selling? Where are investors putting their money? And what is being avoided? Sifting through Morningstar, Citywire, Lipper, Investment Association and others, can provide direction on what’s hot and what’s not in the investment landscapeContinue reading “Investment Funds: What’s Selling and What’s Not”
The Central Bankers’ Christmas Party – Two
It was the night before Christmas And all the markets were calm The traders had all put their books away So really there was no cause for alarm But back in the darkened halls of the ECB And the corridors of the Federal Reserve Central Bankers, past and present, were keeping a watch To makeContinue reading “The Central Bankers’ Christmas Party – Two”
Asset Management continues to deliver…………………certainly for the asset managers.
. In fairness, investors generally have also been enjoying good returns through this pandemic period.2021 will be another record year for the Asset Management industry.Markets have performed well, investors have poured record amounts into funds, and costs have been extremely well managed. Headlines about asset managers’ profits in the Financial Times ring with words likeContinue reading “Asset Management continues to deliver…………………certainly for the asset managers.”
Language Lessons
It has been the economic surprise of 2021 and there are still voices on both sides of the argument. Inflation has taken off as a concern for investors, consumers, producers and policy makers. The most recent number to grab headlines in the US was a staggering 6.2% – the largest since 1990. At the startContinue reading “Language Lessons”
Still Absolutely Not So Fabulous
Three years ago on this blog, I looked at Absolute Return Funds – funds that were still very much in vogue and in demand. They were the top selling fund type in 2016 and 2017 according to Investment Association figures. These funds typically offered cash plus 4% or more and the promise was that thisContinue reading “Still Absolutely Not So Fabulous”
Emerging Markets – is it over?
Emerging Markets have long played a role In investment portfolios whether pension funds or retail investors. Investing in sometimes more “exotic” markets has been seen to be a way of tapping into higher returns while diversifying away risk. Investors could have exposure to Coca-Cola bottlers in Argentina, software companies in India through to supermarkets inContinue reading “Emerging Markets – is it over?”
US Economy 2021: Fire and Ice
Where does the US Economy go from here? There are two clear views – and they are almost diametrically opposed to one another. And we are seeing the data swing from supporting one view to the other, on an almost daily basis. One view is that too much money is being pumped into the economy,Continue reading “US Economy 2021: Fire and Ice”
Fund Management – Next Steps
It’s business as usual for fund managers – in fact it’s better than usual. Recovering markets and consistent positive funds flows have pushed global industry assets under management to a new peak of €93 trillion. That’s up 11% on the previous year. Closer to home European asset managers saw their assets up 5% to overContinue reading “Fund Management – Next Steps”
Irish Financial Services – can you trust them?
You can’t go the distanceWith too much resistance Trust in Irish Banks and other financial institutions is on the floor. And the disappointing thing is that in the last two years things don’t appear to have got any better. And trust matters. A 2021 survey across 28 countries and 59,000 customers revealed trust as theContinue reading “Irish Financial Services – can you trust them?”
Asset Management and ESG: Doing Good or just a Business Opportunity?
The numbers continue to amaze. ESG (Environment/Social/Governance) seems to be everywhere in the investment world. 84% of flows into global equities in the past 2 years were into ESG funds according to one source. And there is no slackening in the pace – flows in the last 4 months of 2020 were better than the previousContinue reading “Asset Management and ESG: Doing Good or just a Business Opportunity?”
Double Dip
While we may gaze enviously at the pace of vaccine roll-outs in the UK or the US, so too might the European economy look enviously to the US at its pace of economic growth in the face of the pandemic. While economic forecasts are being revised up for the US, with some now suggesting a strongContinue reading “Double Dip”
A World Divided
The global economy has reached a fork in the road. This is the advice the IMF provided to the recent G20 meeting of Finance Ministers and Central Bank Governors. As the world continues to climb back from the worst peace time recession since the Great Depression, the prospects and pace of any recovery are, inContinue reading “A World Divided”
Is Investment Management the Weakest Link?
In mid-2020, the Financial Times asked the question was investment management the weak link in the current economic/health crisis? The authors were thinking back to the role played by the banks in the 2008 crisis and the need to inject public money into a system which still hasn’t returned to being a growth driver. Now,Continue reading “Is Investment Management the Weakest Link?”
The End of Interest Rates
Interest rates are the policy tool of choice for Central Bankers. And until the Great Financial Crisis, they were almost the only tool investors paid any attention to. This was how Paul Volcker, then chairman of the US Federal Reserve, whipped inflation out of the US economy from the early 1980’s. Setting interest rate policyContinue reading “The End of Interest Rates”
Tradewinds 